HEALTH SAVINGS ACCOUNT
More than a Health Insurance Policy - A plan for Financial Security
Money spent on health insurance is gone forever, but money placed in your Health Savings Account (HSA) helps you build a secure financial future. Quite simply, HSAs turn a portion that you or your employer pay for insurance into a tax free investment for you. The money in your HSA account grows, year after year, earning interest, providing a secure future for you and your loved ones. If you need medical care, the money in your HSA is there to pay for it. And even better, your HSA can be used to pay for care that most insurance policies won’t cover!
A Way to Reduce Your Taxes
HSAs provide a great way to turn money you would have paid out in taxes into a lasting investment! It’s just like having another IRA account, except you can use this one to pay for medical care!
- If you are an employer, you may choose to contribute money into your employees’ HSAs. These contributions are tax deductible to you, but are not taxable as income to them. You don’t have to pay FICA or FUTA on these contributions, either.
- If you are an employee, your deposits are tax deductible. Your deposits and the interest you earn on them will continue to be nontaxable as long as you use the money to pay for medical care.
- If you are self employed, you can deduct the money you deposit in your HSA. Putting your health care dollars into a HSA makes sense – it’s a great way to save money and pay for medical care!
